Aker Status and outlook · Aker takes new strategic position in exploration & production (E&P) •...

1

The preferred partner

Aker ASA

AkerStatus and outlookJanuary – March 2009

Oslo, 11 May 2009

Aker 1Q09 | Status & Outlook | 2© Aker |


Aker ASAMay 2009

Aker 1Q09Agenda

Highlights 1Q09Streamlining and focused AkerAker Holding

• Øyvind Eriksen, President & CEO

Financial detailsand operating company overview

• Bengt A Rem, CFO, Aker

2



Aker ASAMay 2009

Aker ASA and holding companies | 1Q09 headlinesStreamlining and focused

Aker Solutions• Aker Solutions acquired building blocks for accellerated growth from Aker.

Transactions confirmed by UBS. Agreement with Aker Holding shareholders

Aker takes new strategic position in exploration & production (E&P)• Has acquired 18.2 % of shares in Det norske oljeselskap ASA

New course, new organisation• Focus on fewer and bigger industrial assets• Industrial Holdings, Portfolio Investments and Treasury• Reporting structure adjusted from 2Q09

Strong balance sheet, flexible financial structure• Equity ratio 89 %• NOK 1 bn gross external debt• NOK 8.1 bn net interest bearing assets• NOK 4.9 bn cash, equivalents and short term interest-bearing assets



Aker ASAMay 2009

Aker ASAMarket and net asset values

8090

100110120130140150160170180

des jan feb mar

Aker vs OSEBX

Aker = OSEBX(indexed)

137,00on 31.12.08

OSEBX

+ 0.4 %on 31 March

Aker

-6.2 %on 31 March

NOK per shareOSEBX indexed

AkerNet asset values

02468

101214161820

31.12.08 31.03.09

NOK bn

Aker NAV

- 2,3 %during first

three months2009

3



Aker ASAMay 2009

Aker ASA and holding companiesStrong balance sheet

0

5 000

10 000

15 000

20 000

25 000

30 000

1Q08 2Q08 3Q08 4Q08 1Q09

Cash, cash equivalents andshort-term int-bearing assets

NOK mill

InvestmentsLong-term int-bearing assets

Tangible, intangible assetsand other current assets

8 297

4 605

4 914

2 023

8 710

3 834

6 326

1 780

Changes in 1Q09Long-term interest-bearingassets grow, cash reduced• Aker Drilling• AMSC bonds• Aker Ghana

Other cash uses• AMSC TRS to NOK 7 strike• Aker Exploration shares• Parent company op costs

Listed assets• Written down by NOK 347 million

Listed assets adjustedto market from 4Q08

Cash made available to subsidiaries on market terms



Aker ASAMay 2009

Aker supporting industrial growthInvestments

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

4Q08 1Q09

NOK mill

Aker Drilling represents42 % of Aker’s investmentsAker Solutions sharesrepresents 20 % ofAker’s investmentsNOK 347 million write-offsin 1Q09 due to stock market fluctuations

Aker Drilling

AkerSolutions

OdimAKBMAKX

AKSBjorgeAKFPAKPSAMSC

Long-term financial assets

Other,not listed

4



Aker ASAMay 2009

Aker supporting industrial growthAgreed and expected funding

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

4Q08 1Q09 year end

Changes 1Q09Aker Drilling lendingincreased as forecast, currently approx NOK 2.4 bnAdditional American Shipping bondsacquiredSeismic survey in Ghana funded by Aker

Aker Drilling

ProjectionsAker Drilling lendingwill continue to grow as previously forecastOther fundingrequirements limited in 2009

NOK mill

Interest-bearing assets

+ 18 %

estimate

Other

+ 2 bn in 2009as stated before



Aker ASAMay 2009

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

09Elow

Aker ASA and holding companiesOutlook remains unchanged

1 At end of period

Cash, cash equivalentsand short-term interest-

bearing items1

NOK mill

Another approx 2 bnfunding committed to subsidiaries in 2009

Cash will return to Aker from late 2009

As stated in4Q presentation

5



Aker ASAMay 2009

Aker OceanHarvest

This is Aker

AkerSeafoods

64.9 %Aker

BioMarine

82.9 %

AkerExploration

76.1 %Aker Oilfield

Services

77 2 %

Aker FloatingProduction

72.3 %Aker Solutions

Aker PhiladelphiaShipyard

50.3 %Aker Clean

Carbon

100 2 %

Workforce of 35 000Operations in 35 countries

NOK 65 bn revenues

Energy, maritime, seafoods & marinebiotech industries

Aker ownership shown (in %)1 Held by Aker Holding, adjusted for shares hold by Aker Solutions

2 Including shares owned by Aker Solutions

Aker Drilling100 %

41.0 %

Key investments

Key investments

AkerDOFSupply

100 %

was



Aker ASAMay 2009

AkerAkerBioMarineBioMarine

Aker going forwardOrganized forvalue creation

Industrial holdingsIndustrial holdings TreasuryTreasury, CFO, CFO Financial holdingsFinancial holdings

Bank depositsBonds

Other loansCurrency mgmtInterest mgmt

American ShippingAker Floating Production

Aker Philpadelphia ShipyardAker Seafoods

Aker Ocean HarvestBjørgeother

E&PE&P(AKX, Ghana)(AKX, Ghana)

Aker Aker CleanCleanCarbonCarbon

Aker DrillingAker DrillingAkerAkerSolutionsSolutions PortfolioPortfolio investmentsinvestments

Aker Asset Management

AssetAsset managementmanagement

Distinguish basedon investmentscharacteristicsRegroup and build distinctteamsSystematicfollow-up

ChairmanChairman, President & CEO, President & CEO

1)

1 Under construction.Effective as of 1 July 2009

6



Aker ASAMay 2009

Aker going forwardFocused active ownership

Financially and strategicallyopportunistic

Long-term value creationMain objective

FlexibleIndefiniteInvestment horizon

Chairman of the Boardand CEO involvement

Key team skills

Transaction frequencyand size

Aker role

Monitor periodically theperformance of the portfolio

rather than the individual investment

Co-operate closely and daily with Aker team responsible for each involvement

Board director(s)

Financial, M&A executionIndustrial, strategic, financial

Frequently and mid-sizeAker: Rarely, but substantialOperating companies:

More frequently and variable size

Active ownerActive owner

Industrial holdingsIndustrial holdings Financial holdingsFinancial holdings



Aker ASAMay 2009

Aker supporting industrial growthAker Ship Lease (under construction)

NB

718

NB

705

Aker Ship Lease has purchased ship under construction from Aker Oilfield ServicesOn 10 year bare boat charter to company managed by Aker Marine Contractors from delivery in 2010

Aker Ship Lease to charter vessel bare boat from DOF Subsea for 5 + 5 x 1 years with purchase option after 5 years, no profit or funding requirement first 5 years

Back-to-back bare boat charter to Aker Oilfield Services

Other vessels possibly to be included later

6 * A

HTS

(50

%)

NB

719

AtlanticNavigator

GecoTriton

7



Aker ASAMay 2009

Aker AkerSolutions

Futurefinancing

Aftertransactions

Aker Solutions acquisitionsCash consideration and future financing

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Assetvalue

Consider-ation

Aker Solutions acquired assetsfrom Aker on 1 April 2009

AKSO bond 1 000Cash 598

Aker AkerSolutions

Futurefinancing

Beforetransactions

Details are available in Aker Solutions’15 April announcement to the market



Aker ASAMay 2009

Aker ASA and holding companiesTotal assets split by type of holding


Industrial holdingsIndustrial holdings TreasuryTreasury Financial holdingsFinancial holdings

Financial holdings

Industrial holdings

Treasury

Other assets

NOK

19.8billion

36 %

50 %

59 %

8



Aker ASAMay 2009

Value creation inAker Solutions

Energy Development &

Services SubseaProducts &

TechnologiesProcess &

Construction

■ Harsh environment

■ Cold climate■ Floaters■ LNG

■ Deepwater■ Well intervention■ Marine

operations■ Lifecycle

services

■ Drilling packages■ Topside and

handling products■ Product-based

services■ Lifecycle services

■ Metals■ Process■ Construction■ Nuclear

Premier growth segments



Aker ASAMay 2009

Current statusTransactions confirmed, case closed

UBS has undertaken second fairness opionion• Aker Solutions’ selection of financial advisor and engagement letter

as per request of the State, Saab and Investor• Scope: Aker Oilfield Services, Odim and Aker DOF Deepwater

UBS concludes: Transactions are fairAker and Aker Solutions proceed to conclude transactions

• No reversing of any of the transactions• No renegotiation of prices• Aker Solutions ASA shareholder meeting to approval loan and

support transactions• Consideration to Aker will be paid in May,

Aker Solutions proceeds with integration of new companies

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Aker ASA

AkerFinancialsJanuary – March 2009



Aker ASAMay 2009

Aker ASA and holding companiesBalance sheet 31.3 31.12 31.3

(in NOK million) 2008 2008 2009Tangible and non-tangible fixed asset 1 054 1 483 1 482Long-term interest bearing items 1 886 3 834 4 605Long-term financial assets 14 592 8 710 8 297Other current assets 569 297 541Cash and interest bearing receivables 9 590 6 326 4 914Total assets 27 691 20 650 19 839Shareholder’s equity 23 561 18 105 17 688Non-interest bearing liabilities 2 311 958 769Interest bearing liabilities (internal) 92 559 356Interest bearing liabilities (external) 1 727 1 028 1 026Equity and liabilities 27 691 20 650 19 839Net interest bearing debt(-)/assets(+) 9 657 8 573 8 137Equity ratio 85 % 88 % 89 %

10



Aker ASAMay 2009

Aker ASA and holding companiesDebt and liabilities overview

Interest bearing debtNOK mill Maturity

Bond AKER 01 358 2010Bond AKER 02 410 2012Bank debt and other 258Total external 1 026Internal debt 356Total 1 382

Interest bearing assetsNOK mill

Cash + cash eqiv. + short-term interest-bear. rec. 4 914Interest-bearing fixed assets 4 605Total 9 519

Net int-bearing items 8 137



Aker ASAMay 2009

Aker ASA and Holding companiesProfit and loss statements

1Q 2Q 3Q 4Q 1Q Year(in NOK million) 2008 2008 2008 2008 2009 2008Sales gains 133 213 - - - 346Operating expenses (46) (41) (42) (63) (59) (192)EBITDA 87 172 (42) (63) (59) 154 Depreciation (4) (5) (4) (5) (4) (18)Net financial items 96 83 427 18 (38) 624Write-downs - - - (5 586) (347) (5 586)Profit before tax 179 250 381 (5 636) (448) (4 826)

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Aker ASAMay 2009

1Q 1Q Year(in NOK million) 2008 2009 2008Operating revenues 1 705 1 460 6 395 Operating profit (EBITDA) (151) (130) (881)Depreciation, impairment changes (64) (194) (397)Non-recurring items - (24) 98Operating profit (216) (349) (1 180)Net financial items 303 (213) (963)Share of earnings in ass. comp. 276 252 616Other items 0 0 0Profit before tax 363 (310) (1 528)Income tax expense (50) 65 359Net profit/loss from cont. oper. 313 (245) (1 169)Discontinuing business (152) 0 109Profit for the period 161 (245) (1 060)Minority share (25) 3 (123)Majority share 187 (249) (937)

Aker group consolidatedIncome statement



Aker ASAMay 2009

Aker group consolidatedBalance sheet

At 31.03 At 31.03 Year(in NOK million) 2008 2009 2008Tangible and non-tangible fixed assets 19 016 24 962 25 614Other fixed assets 5 341 5 663 5 673Cash and interest bearing receivables 15 663 11 491 11 559Other current assets 5 067 4 093 4 404Total assets 44 088 46 209 47 249Shareholders’ equity 14 168 14 157 14 716Minority interests 10 020 6 530 6 932Interest-bearing debt 12 886 17 457 14 052Interest-free debt 8 014 8 066 11 550Equity and liabilities 45 088 46 209 47 249Net interest bearing assets 2 778 (5 965) (2 493)Equity ratio (%) 54 % 45 % 46 %

12



Aker ASAMay 2009

Aker ASA and holding companiesBalance sheet – effect Project Ren

Before After(in NOK million) 1Q 2009 1Q 2009Tangible and non-tangible fixed asset 1 482 1 482Long-term interest bearing items 4 605 5 512Long-term financial assets 8 297 7 299Other current assets 541 541Cash and interest bearing receivables 4 914 5 398Total assets 19 839 20 232Shareholder’s equity 17 688 18 081Non-interest bearing liabilities 769 769Interest bearing liabilities (internal) 356 356Interest bearing liabilities (external) 1 026 1 026Equity and liabilities 19 839 20 232Net interest bearing debt(-)/assets(+) 8 137 9 529Equity ratio 89 % 89 %


Aker ASA

AkerOperating companies

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Aker ASAMay 2009

AkerAkerBioMarineBioMarine


Industrial holdingsIndustrial holdings TreasuryTreasury, CFO, CFO Financial holdingsFinancial holdings

Bank depositsBonds

Other loansCurrency mgmtInterest mgmt

American ShippingAker Floating Production

Aker Philpadelphia ShipyardAker Seafoods

Aker Ocean HarvestBjørgeother

E&PE&P(AKX, Ghana)(AKX, Ghana)

Aker Aker CleanCleanCarbonCarbon

Aker DrillingAker DrillingAkerAkerSolutionsSolutions PortfolioPortfolio investmentsinvestments

Aker Asset Management

AssetAsset managementmanagement

ChairmanChairman, President & CEO, President & CEO

1)

1 Under construction. Effective as of 1 July 2009



Aker ASAMay 2009

Industrial holdingsAker Solutions

Good performance• Well prepared to meet the global recession• High quality order backlog of NOK 52bn• EBITDA in excess of NOK 4.5bn in 2009

Shaping the new Aker Solutions• Strengthen position in the energy sector• Acquisition and closer integration of forward-

looking companies• Profitable growth in high margin segments

Key figure 1Q 1Q Year(in NOK million) 2008 2009 2008Revenues 14 217 14 975 58 252EBITDA 1 002 1 124 3 382Order intake 13 283 10 732 55 590Order backlog 54 482 52 322 58 016

Drilling upgrade Oseberg B, StatoilHydroContract value ~ NOK 1 300 million

Kollsnes* EPC, StatoilHydroContract value ~ NOK 1 500 million

* Photo: Dag Magne Søyland/StatoilHydro

14



Aker ASAMay 2009

Industrial holdingsAker Exploration

Boe = barrels of oil equivalent

Aker Exploration licenceson the Norwegian

continental shelf May 2009

Key figures 1Q 1Q Year(in NOK million) 2008 2009 2008Revenues 0 0 0EBITDA (66) (31) (497)

Preparing for drilling operations• Participating in drilling in May• Drilling schedule for Aker Barents in process• Funds secured for 3-year drilling campaign

Attractive porfolio• 21 licenses on the NCS• 4 new licenses in the 20th license awards• 2 licenses as operator



Aker ASAMay 2009

Industrial holdingsAker Drilling

Preparing operational start-up • Aker Spitsbergen delivered 27

February• Aker Barents in Q2 2009• Organisation in place (382

employees)• Strong cooperation with clients

Long term cash- generator• The rigs will generate in excess

of USD 1 million per day

Aker Barents at Aker Stord on 10 May 2009, ready for sea trials

15



Aker ASAMay 2009

Industrial holdingsAker Clean Carbon

Signed Mongstadcontract• Building European CO2

Technology Centre

• Important recognition of technology in Norway

Developing more cost effective technology • R&D cooperation with NTNU

and Sintef in SOLVit• New SOLVit partners: E.ON,

ScottishPower & Statkraft

The Mobile Test Unit en route to the Longannetpower plant in Scotland, where it will for the first time capture CO2 from a coal fired power plant



Aker ASAMay 2009

Industrial holdingsAker BioMarine

Key figures 1Q 1Q Year(in NOK million) 2008 2009 2008Revenues 17 20 85EBITDA (18) (48) (152)

Superba™ No 1 in Norway• Best-selling omega-3 product in Norwegian health

food shops• Superba on its way to global markets• First sale of krill oil to the US in April • Direct sales of krill concentrate from 3Q 2009

Increased demand for Qrill™ meal• USD prices have declined from 2008

New Superba Krill Caps

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Aker ASAMay 2009

Portfolio investmentsAker Floating Bjørge

Back in production• Recommenced on March 8 after

FPSO repairs

Long term contract • Dhirubhai-1 the first FPSO in India• KG D6 field accounts for 40 per

cent of India’s oil and gas production

Good order intake, improved contract reserve • Solid foundation for meeting

challenging markets

Strong results for Safety & Automation Solutions • Challenges in Rotating Equipment

Solutions



Aker ASAMay 2009

Portfolio investmentsAker Seafoods Aker Ocean Harvest

Reduced prices, but:• Improved product mix and activity• Challenging market for whitefish

Focus on fresh production• Sales of filet increased more than

30%

High volumes of fishery quotas remain

Low activity• As expected and planned in Q1

Slightly lower surimi prices• Prices still at relatively high level

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Aker ASAMay 2009

Portfolio investmentsAker Philadelphia American Shipping

Continuing profitability growth• Delivered sixth of twelve product

tanker series• Order backlog takes production

to Q1 2011

Key focus on new orders• Evaluation of possible new builds• Global recession creates

uncertainties

Sixth vessel delivered on schedule on February 19 • US freight rates under pressure,

but long-term outlook remains positive

Changes to loan agreement NOK 700 million bond successfully passed



Aker ASAMay 2009

Business overviewKey holdings as of 8 May 2009Selected key figures Aker Market 2

(All amounts in NOK milllion) holding value 2008 2009 2008 2009

Aker Solutions (OSE)3 41.0 % 3 121 14 217 14 975 1 002 1 124Aker Exploration (OAAX)4 (C) 76.1 % 373 - - (66) (31)Aker Drilling (not listed) 100.0 % N/A - - (41) (112)Aker BioMarine (OSE) (C) 82.9 % 423 17 20 (18) (48)

American Shipping Company (OSE) 19.9 % 47 - - - -Aker Philadelphia Shipyard (OAAX) (C) 50.3 % 46 312 431 15 36Aker Seafoods (OSE) (C) 64.9 % 143 791 639 73 54Aker Floating Production (OSE) (C) 72.3 % 83 - 201 (43) 106Odim 1.7 % 31 450 558 79 88Bjørge 39.9 % 109 372 388 19 19C = Consolidated in Aker Group accounts. Others are reported as associated companies.OSE = Trading on Oslo Stock Exchange. OAAX = Trading on Oslo Axess.1 EBITDA = Earnings before interests, tax, depreciation and amortization.2 Market value Aker share holding 8 May 2009. 3 Shareholding owned by Aker Holding, which is 60-percent Aker owned. Stated value is Aker’s share of Aker Holding . 4 Before tax.

Q1 Q1Revenues EBITDA1

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Aker ASAMay 2009

Aker groupIR ContactsCompany (Ticker) Name Phone (dir line) E-mailAker Geir Arne Drangeid +47 24 13 00 65 [email protected](AKER) Senior Partner & EVP

Bengt A Rem +47 24 13 00 30 [email protected] Partner & CFO

Aker Solutions Lasse Torkildsen +47 67 51 30 39 [email protected](AKSO) VP Investor relationsAker Seafoods Gunnar Aasbø +47 24 13 01 81 [email protected](AKS) CFOAker Philadelphia Shipyard Jeffrey Theisen +1 (215) 875-2678 [email protected](AKPS) CFOAker Floating Production David Bandele +47 22 94 73 91 [email protected](AKFP) CFOAker BioMarine Aaron Kramer +47 24 13 01 30 [email protected](AKBM) CFOAker Exploration Alan J McIntyre +47 24 13 00 19 [email protected](AKX) CFO



Aker ASAMay 2009

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Aker ASAMay 2009

Disclaimer

This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker ASA and Aker ASA’s(including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trade mark for most of this entities. In this document we may sometimes use ”Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company.

Aker Status and outlook · Aker takes new strategic position in exploration & production (E&P) •...

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Transcript of Aker Status and outlook · Aker takes new strategic position in exploration & production (E&P) •...